World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At ...

World Company expects to operate at 80% of its productive
capacity of 70,000 units per month. At this planned level, the
company expects to use 25,200 standard hours of direct labor.
Overhead is allocated to products using a predetermined standard
rate based on direct labor hours. At the 80% capacity level, the
total budgeted cost includes $57,960 fixed overhead cost and
$322,560 variable overhead cost. In the current month, the company
incurred $386,000 actual overhead and 22,200 actual labor hours
while producing 53,000 units.

of direct labor . Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80 % capacity level , the total budgeted cost includes $51,660 fixed overhead cost and $273,060 variable overhead cost . In the current month , the company incurred $306,000...

James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units ( 80 % of its production capacity of 10,000 units) and prepared the following overhead budget : Operating Levels

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